City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Marie Guillory Jones, Director of Human Resources
MEETING DATE: September 5, 2023
ITEM NO: 7.7
SUBJECT: Approve the American Federation of State, County, and Municipal Employees (AFSCME) Local 10, Patterson Management and MidManagement Employee Association (PMMEA), Patterson Fire Fighters Association IAFF Local 4577, and the Department Heads and Unrepresented Salary Schedules Effective July 1, 2023; the Revised Department Heads and Unrepresented Salary Schedule Effective July 1, 2022; and the Part-Time Salary Schedule Effective January 1, 2024.
RECOMMENDATION
Motion to Approve the American Federation of State, County, and Municipal Employees (AFSCME) Local 10, Patterson Management and Mid-Management Employee Association (PMMEA), Patterson Fire Fighters Association IAFF Local 4577, and the Department Heads and Unrepresented salary schedules effective July 1, 2023; the revised Department Heads and Unrepresented Salary Schedule effective July 1, 2022; and the Part-Time Salary Schedule Effective January 1, 2024.
BACKGROUND
The City Council previously approved Memoranda of Understanding (MOUs) between the City of Patterson and AFSCME, PMMEA, and IAFF for a 3-year term, effective July 1, 2022, through June 30, 2025. Each of the approved contracts include language that allows for annual cost-of-living adjustments (COLA) and equity increases based upon the results of the 2022 compensation study. This recommendation is to implement the Year-2 COLA and related equity increases for each of the represented groups.
In order to maintain equity between classifications and alignment with the city-wide compensation study conducted by an external consultant, it is also recommended that comparable increases for the Department Heads and Unrepresented employees are provided.
In addition, it is recommended that the Council approve a revised July 1, 2022 Department Heads and Unrepresented salary schedule to incorporate the City Manager’s salary. His salary is stipulated by written employment agreement, with the most recent amendment approved by Council on September 20, 2022, separately from the standard salary schedule. In compliance with the Public Employees’ Retirement Law (PERL), Public Employees’ Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR), all employee payrates must be included in a publicly available pay schedule.
Finally, it is also recommended that Council approve the Part-Time Salary Schedule, effective January 1, 2024, in accordance with state law. On July 31, 2023, the California Department of Finance Director announced that California’s minimum wage will increase to $16.00 per hour for all employers beginning January 1, 2024. This new salary schedule will bring our current minimum wage classifications up to the new minimum wage and provide a commensurate increase for the remaining classifications to maintain internal equity.
ANALYSIS
In accordance with the Memoranda of Understanding referenced above, the COLAs for Year-2 were calculated based upon a review and analysis of the City’s budget, including local sales tax revenue and the February 12-month Consumer Price Index (CPI). The MOU approved increase consists of a minimum of 3% and a maximum of 5% COLA, based upon the availability of funds. The same analysis has been applied to the salary schedule for Department Heads and Unrepresented Employees. The City’s reported percentage change between fiscal years ending 2021 and 2022 reflected an increase in sales tax revenues of 23.1% and an increase in CPI at
5.3%, which translates to a 5% COLA.
An external consultant conducted a compensation study to assess City classifications as compared to those at comparable agencies. Those classifications that were below market median were provided with an equity increase, the sum of which is to be allocated across the three fiscal years. A portion of the equity increase was provided in Year-1 of the contracts, with any remaining equity to be divided between years 2 and 3, subject to the availability of funds. Any applicable Year-2 equity is also included in the salary schedules.
To ensure compliance with Public Employees’ Retirement Law (PERL), Public Employees’ Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR) the City Manager classification and salary range have been added to the revised Department Head and Unrepresented Salay Schedule effective July 1, 2022. No other changes or adjustments have been made.
FISCAL IMPACT
This action is for the approval of updated salary schedules only. There is no financial consideration associated with this action. The COLA and equity increases were previously approved by the City Council as stated above and fiscal appropriations were included in the Fiscal Year 2023-2024 Budget adopted by Council on June 27, 2023, per Resolution No. 2023-
38.